As the US Holiday Season approaches, the glittering world of jewellery is bracing itself for a notable downturn in the United States. According to the latest insights from Mastercard SpendingPulse, U.S. retail sales, excluding automotive purchases, are set to surge by an impressive 3.7% year-over-year (YOY) during the holiday season from 1st November to 24th December, 2023. However, there is one conspicuous exception to this festive spending spree – jewellery sales, which are projected to decline by -0.3% YOY. By comparison, Mastercard expected jewellery sales in the 2022 Holiday Season to grow 2.2%.
While the 2022 holiday season witnessed buoyant spending, driven by inflationary pricing, pent-up demand, burgeoning savings, and increasing wages, the 2023 season appears poised for a recalibration across various retail categories, shopping channels, and economic sectors. This realignment mirrors the ever-evolving macroeconomic landscape.
The focus of this year’s holiday shopper differs notably from years past. Michelle Meyer, U.S. Chief Economist, Mastercard Economics Institute, said, “While the consumer of holidays past may have been a consumer trying to find footing in a rapidly shifting economy, the consumer of holidays present has taken their power back. We expect these individuals to impressively navigate the holiday season, making choices and trade-offs that best suit their lifestyles.”
Yet, amid this promising forecast for holiday spending, the jewellery industry finds itself facing a unique challenge. Jewellery sales are projected to experience a -0.3% YOY decline in the 2023 holiday season, marking the sole sector set to witness negative growth. The reasons behind this downturn may be multifaceted, possibly reflecting changing consumer preferences or shifts in the jewellery market dynamics.
For the 2023 Holiday Season, Mastercard predicts U.S. retail growth of +6.7% for e-commerce, +2.9% for in-store, +1% for apparel, +6% for electronics, +3.9% for grocery, and +5.4% for restaurants.
Steve Sadove, Senior Advisor for Mastercard and Former CEO and Chairman of Saks Incorporated, added, “This holiday season, retailers will be vying for consumer dollars. With numerous choices and tightening budgets, you can anticipate shoppers to be increasingly selective and value-focused. We expect the most effective holiday strategy will be to meet consumers where they are – personalised promotions to in-store experiences will be key in doing so.”